MTS has raised its outlook for the full year, despite difficulties in Ukraine and the weaker ruble. The Russia and CIS operator now expects annual revenue growth of of at least 2 percent this year, compared to an earlier estimate of around 1 percent. Growth will be led by around 5 percent growth in its home market Russia and a better-than-expected performance in Ukraine and Armenia. The outlook for adjusted OIBDA was raised to 1 percent growth, from a forecast last quarter for a stable result.
MTS maintained its capex budget at RUB 90 billion for the full year, after spending RUB 53.83 billion in the first nine months. The operator said it had brought forward some equipment purchases in anticipation of a further depreciation of the ruble. MTS said the outlook remains volatile for Ukraine, but it is positive on the long-term prospects in the country with the advent of 3G services there.
For the third quarter, the company reported revenues up 3.6 percent year-on-year to RUB 107.15 billion, and adjusted OIBDA increased 4.1 percent to RUB 48.19 billion. Net profit was still down 11.2 percent to RUB 16.06 billion due to forex losses.
